Kaupthing or Mini ISA?

HenrikJonsson

I have used my Cash ISA allowance, and have another £4000 I can invest before the end of this fiscal year. If I put it into a Kaupthing fixed term account I can get 6.85%, but I am clueless as to what to invest in through an mini ISA. I have been considering gilts as they are safe, but even considering the tax benefit, it sounds like the Kaupthing account would be better.

Any advice would be greatly appreciated!

Lavendyr

Right now, I wouldn't put into a fixed bond but would rather put it in an instant access savings account (one that still pays a decent rate), wait until after 5th April and then stick another £3600 into your ISA. The remaining £400 can stay in the easy access saver or you could start to put it into a stocks & shares ISA if you prefer.

pem2

HenrikJonsson wrote: »

If I put it into a Kaupthing fixed term account I can get 6.85%, but I am clueless as to what to invest in through an mini ISA. I have been considering gilts as they are safe, but even considering the tax benefit, it sounds like the Kaupthing account would be better.

The KE website on first opening could be read that you only need a minimum of £1000 for the 1yr FTD 6.86, but in fact they require a minimum of £5000. Alternatively if the Nationwide cash ISA 1yr or 2yr FTD 6.15 it is still open/available in the first week of April then that might be an option.

munk

There's an OEIC fund called Arch Cru Investment Portfolio which is very low in volatility historically:

CF ARCH CRU INV PORTFOLIO B

It's a cautious managed fund and annual management charges are slightly on the high side up at 2.3% and the initial charge is 6% (discounted down to 2% on Hargreaves Lansdown), but for the money it might be worthwhile given current volatility and this funds ability to keep things tidy. Perhaps pair it up with your gilt fund and maybe something like the Blackrock UK Absolute Alpha fund? Just ideas